The Panasonic M2 was a video game console design developed by 3DO and then sold to Matsushita. Before it could be released, however, Matsushita cancelled the project in mid-1997, unwilling to compete against fellow Japanese electronics giant Sony's PlayStation due to the failure of the 3DO Interactive Multiplayerconsole. The M2 was cancelled so close to release, marketing had already taken place in the form of flyers, and one of its prospected launch titles, WARP's D2, had several gameplay screens in circulation (this game was later redesigned from scratch to be released on the Dreamcast).
Development kits and prototypes of the machine are very valuable pieces among today's collectors. M2's technology lived on at Matsushita; integrated in the multimedia players FZ-21S and FZ-35S, both released in 1998. Both products were aimed at professionals working in medicine, architecture and sales, not home users.
Yet the M2 did see some use as a game machine – namely, a short-lived arcade board by Konami. As games ran straight from the CD-ROM drive, it suffered from long load times and a high failure rate, so only five games were developed for it.
The M2 was reportedly several times (2–3) more powerful than the Nintendo 64 in terms of polygon graphics capabilities and slightly more powerful than the 3DfxVoodoo Graphics (Voodoo1) accelerator chipset for PC cards. Matsushita was apparently hyping the M2 to be more powerful than it really was, saying it was almost on par with Sega's Lockheed Martin-designed Model 3 arcade board. The Model 3 was approximately 10 times more powerful than the Nintendo 64. In a 1998 interview by Next Generation magazine, WARP's Kenji Eno said that Sega's Dreamcast was about three to four times more powerful than M2. This backs up earlier reports that M2 had two to three times greater performance than N64, but no more than that. It was still a powerful machine for 1996–1997.